Report

viii
CONTENTS
7. Revenue and Welfare Implications of SAFTA: Partial Equilibrium Analysis 54
Introduction 54
Revenue, Welfare and Trade Effects: Methodology 54
Revenue, Welfare and Trade Effects: Results 55
Conclusion 59
8. Impact of SAFTA on Inward and Outward Foreign Direct Investments 60
Introduction 60
Theoretical Framework and Review of Literature on Impact of Regional Trade Agreements on FDI 60
Trends in Inward and Intra-Regional FDI in South Asia 62
Impact of SAFTA on Inward FDI into South Asia 67
Conclusion 69
9. Quantification of Benefits from Transport and Trade Facilitation in South Asia 70
Introduction 70
Overview of Current Barriers to Trade in SAARC 71
Informal Trade in SAARC 72
The Kolkata-Petrapole/Benapole Corridor 74
Bagdogra as a Gateway and Hub 79
Railway Improvement Project from Lahore to Wagah 83
Colombo Port Expansion 86
Conclusion 90
PART II
Benefits from Deepening Integration: Trade in Services
10. Trade in Services and South Asia: An Overview 95
Introduction 95
Overview of Services: Country-Level Analysis 96
Mutual Recognition Agreements 102
South Asia and Services Negotiations 102
11. Construction and Related Engineering Services 104
Introduction 104
Conclusion 117
12. Tourism and Travel Related Services 118
Introduction 118
Classification of the Sector 120
Characterising SAFTA Countries’ Commitments/Initial/Revised Offers 121
Conclusion and Suggestions 131
13. Higher Education Services 133
Introduction 133
Characterising SAFTA Countries’ Commitments/Initial/Revised Offer 134
Conclusion and Suggestions 148
14. Health and Related Services 150
Introduction 150
Commitments in Health and Medical and Dental Services under GATS 151
Domestic Regulatory Requirements for Medical and Dental Services 153
Constraints and Opportunities for Trade in Healthcare Services in the SAARC Countries 159
Conclusions and Recommendations 162
15. Prospects for the Telecommunication Sector under SAFTA 164
Introduction 164
Coverage of the Sector 164